2018 Midyear Global Outlook
What’s in store for the second half of 2018? Get the Ivy Investments team’s views in our Global Midyear Outlook.
There are many ways to invest for education goals, thus a great deal of choices to consider. The Ivy InvestEd℠ 529 Plan, a tax-advantaged education savings plan, is designed to help make preparing for the future convenient.
Ivy INVESTED 529 Plan Highlights
|Age of Beneficiary||Portfolio|
|Ages 0-4||Aggressive Portfolio|
|Ages 5-8||Growth Portfolio|
|Ages 9-11||Balanced Portfolio|
|Ages 12-14||Conservative Portfolio|
|Ages 15-18||Income Portfolio|
|Ages 19-older||Fixed income Portfolio|
When you establish an Ivy Invested 529 Plan, one of your options is to select one of six portfolios based on the age of your beneficiary. These age-based portfolios have been developed to seek diversification and appropriate asset allocation based upon the approximate time horizon until the funds are needed to pay for the designated beneficiary’s qualified education expenses. Each portfolio has a different level of equities and fixed-income securities (see chart in the Static Portfolios section that follows) so that as the designated beneficiary ages your investments will move to a gradually more conservative portfolio in an effort to help reduce the risk of loss when capital preservation is needed most. Organized as actively managed “fund of funds,” these portfolios help diversify your investments among a variety of underlying mutual funds within the Ivy Funds family. The portfolios will typically invest in Class N share of underlying Ivy Funds.
The balance is automatically exchanged to a different age-based portfolio within approximately 30 days of the designated beneficiary’s 5th, 9th, 12th, 15th and 19th birthdays.
A second option available to you in the Ivy InvestEd 529 Plan allows you to invest in a static portfolio that is outside the age range of the designated beneficiary. However, by so doing, your account will not participate in the automatic exchange feature. The static portfolios option offers the same six actively managed age-based portfolios, but allows the account owner to stay in the portfolio of his or her chosen risk tolerance, regardless of the designated beneficiary's higher education time horizon, and without automatically transferring to the next age-based portfolio. If you choose this option, you may forfeit some of the benefits of diversification and risk management sought by the age-based portfolio option.
Diversification and asset allocations are techniques to help manage risk, it cannot guarantee a profit or protect against loss in a declining market.
0 - 4 YEARS OLD
58% U.S. Equity
32% International Equity
10% Fixed Income
5 - 8 YEARS OLD
49% U.S. Equity
26% International Equity
25% Fixed Income
9 - 11 YEARS OLD
40% U.S. Equity
20% International Equity
40% Fixed Income
12 - 14 YEARS OLD
27% U.S. Equity
13% International Equity
60% Fixed Income
15 - 18 YEARS OLD
18% U.S. Equity
7% International Equity
75% Fixed Income
When you establish an Ivy InvestEd 529 Plan, a third option is that you may elect to invest in an individual fund portfolio. The 20 individual fund portfolios offered by the plan invest in a single Class E share mutual fund (an "underlying mutual fund"), including U.S. Equity Funds, Global/International Equity Funds, Fixed-Income Funds, and Specialty Funds from the Ivy Funds family.
Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the Ivy InvestEd 529 Plan. This and other information is found in the InvestEd Portfolios prospectus, and the Ivy Funds prospectus, the Ivy InvestEd 529 Plan Program Overview, and the InvestEd 529 Plan Account Application. All of these items are available from these links or from a financial advisor. Please read the prospectus carefully before investing.
Before investing, non-residents or tax-payers of states other than Arizona should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors than those offered under the Ivy InvestEdSM 529 Plan. Please consult your tax advisor regarding your personal tax situation.
The Ivy InvestEd 529 Plan and shares of InvestEd Portfolios are offered by Waddell & Reed, Inc. as part of the Arizona Family College Savings Program Trust Fund, a 529 plan administered by the Arizona Commission for Postsecondary Education (the “Program”). Waddell & Reed, Inc. is one of multiple financial Institutions eligible to offer Investments under the Program. Accounts a not insured by the State of Arizona, the Trust, the Arizona Commission for Postsecondary Education, or any other governmental entity, Waddell & Reed, Inc., Ivy Distributors, Inc., or any affiliated or related party, and neither the principal deposited nor the Investment return is guaranteed by any of the referenced parties.
Past performance is not a guarantee of future results. Investments into a 529 plan, including the Ivy InvestEd 529 Plan, are not guaranteed, and all investments involve a certain degree of risk. The value of your Ivy InvestEd 529 Plan account will depend upon the performance of the portfolios in which your account is invested and will fluctuate. It is possible that the value of your account may be less than the amount you invested.
The information provided may include references to concepts that have legal, accounting and tax implications. It is not to be construed as legal, accounting or tax advice, and is provided as general information to assist in the understanding the issues discussed. Neither Waddell & Reed, Inc. nor Ivy Distributors, Inc., nor their associates offer tax, legal, or accounting advice. You may want to consult with your accountant or tax advisor to discuss your personal situation. Investment decisions should always be made based on an investor's specific financial needs, objectives, goals, time horizon and risk tolerance.